POSCO denies report on STX PanOcean takeover
Published : 2013-02-25 19:47
Updated : 2013-02-25 19:47
POSCO on Monday denied news reports that it was considering taking over STX PanOcean, the country’s third-largest shipping and logistics company.
“We have neither discussed the takeover, nor do we have any plan of the sort in the future,” said a POSCO official.
“POSCO has no reason to take on the risk of taking over STX PanOcean.”
This came in response to a report by a local economic daily that the leading steelmaker might purchase the shipping company, with the aim of expanding its subsidiaries.
STX PanOcean’s stock had been depreciating in the market since the firm was put up for sale late last year but rebounded on Monday upon the rumor of POSCO’s involvement.
The stock market operator Korea Exchange thus demanded POSCO make its official notice within the day.
STS PanOcean has been experiencing sales losses since 2005 and its total debt as of the third quarter of last year was 5.4 trillion won ($5 billion), according to officials.